Knowledge@Wharton: “Data analytics and artificial intelligence are transforming our lives. Be it in health care, in banking and financial services, or in times of humanitarian crises — data determine the way decisions are made. But often, the way data is collected and measured can result in biased and incomplete information, and this can significantly impact outcomes.
In a conversation with Knowledge@Wharton at the SWIFT Institute Conference on the Impact of Artificial Intelligence and Machine Learning in the Financial Services Industry, Alexandra Olteanu, a post-doctoral researcher at Microsoft Research, U.S. and Canada, discussed the ethical and people considerations in data collection and artificial intelligence and how we can work towards removing the biases….
….Knowledge@Wharton: Bias is a big issue when you’re dealing with humanitarian crises, because it can influence who gets help and who doesn’t. When you translate that into the business world, especially in financial services, what implications do you see for algorithmic bias? What might be some of the consequences?
Olteanu: A good example is from a new law in the New York state according to which insurance companies can now use social media to decide the level for your premiums. But, they could in fact end up using incomplete information. For instance, you might be buying your vegetables from the supermarket or a farmer’s market, but these retailers might not be tracking you on social media. So nobody knows that you are eating vegetables. On the other hand, a bakery that you visit might post something when you buy from there. Based on this, the insurance companies may conclude that you only eat cookies all the time. This shows how even incomplete data can affect you….(More)”.